Subject Matter Jurisdiction

Question 1

SMJ Definition

Answer 1

Subject matter jurisdiction refers to the court’s authority to adjudicate based on the type of case and in some cases, the dollar amount in controversy

Question 2

What jurisdiction are state courts considered?

Answer 2

General jurisdiction: which means they have authority to hear cases on any subject matter unless they are ousted of such power by state or federal law

Question 3

In state court, subject matter jurisdiction is governed by what law?

Answer 3

state law

Question 4

What do you need for diversity jurisdiction

Answer 4

need complete diversity and amount in controversy exceeding $75,000

Question 5

What is the constitutional requirement of diversity?

Answer 5

Under Article III, federal courts have smj over two primary types of cases:
(1) federal question and
(2) diversity of citizenships

Question 6

What does Article III provide?

Answer 6

Provides for federal jurisdiction over cases between citizens of different states

Question 7

What kind of diversity does the constitution require?

Answer 7

Partial

Question 8

What kind of diversity does 28 U.S.C. 1332 require?

Answer 8

28 U.S.C. § 1332 requires complete diversity

Question 9

Who is considered diverse under 28 U.S.C. 1332?

Answer 9

• Citizens of different states of the United States
• Citizens of a state and citizens or subject of a foreign state
• Citizens of different states, in a case in which citizens or subjects or a foreign state are additional parties
• A foreign state (as plaintiff) and citizens of a state or different states

Question 10

What must be involved to bring a suit into federal court under diversity?

Answer 10

A US citizen must be involved

Question 11

What is complete diversity?

Answer 11

all plaintiff must have different citizenship than all defendants

Question 12

When is diversity measured?

Answer 12

At the time of filing, someone moving before or after does not effect jurisdiction

Question 13

Define the domicile test

Answer 13

There must be physical presence (express or implied) and an intent to remain their indefinitely

Question 14

What kind of status must aliens have to determine a domicile?

Answer 14

Aliens must have permanent resident alien status are deemed citizens of the state of domicile. If they do not have this, they have their at home citizenship

Question 15

Do stateless person eligible for diversity status?

Answer 15

No

Question 16

How do beneficiaries, heirs, incompetents have citizenship?

Answer 16

have the citizenship of the person being represented and not that of a representative, trustee, guardian, executor, or administrator

Question 17

How do class members how class actions or shareholder’s derivative suits have citizenship?

Answer 17

have the citizenship of the named representative(s) in the lawsuit

Question 18

How do corporations and unincorporated associations have citizenship?

Answer 18

(1) state of incorporation and (2) principal place of business

Question 19

How is the principal place of business defined?

Answer 19

were the corporation’s high level officers direct, control, and coordinate the corporations activities (the nerve center)

Question 20

How do unions have citizenship?

Answer 20

all the members of the association

Question 21

How are foreign states have citizenship?

Answer 21

treated under the federal law regarding sovereign immunity

Question 22

Devices to create or destroy diversity

Answer 22

Collusive joinder bars federal jurisdiction
Changes of domicile to create diversity
Assignment of a claim to create diversity: a party may not assign an otherwise assignable claim to another party in a different state merely to create diversity.
Nominal parties: are not counted toward diversity
Party realignment: the court may required party realignment according to true party interest, and this may affect diversity

Question 23

Amount in controversy

Answer 23

where the matter in controversy exceeds the sum or value of $75,000, exclusive of interests and costs

Question 24

Good faith pleading standard

Answer 24

Amounts are determined by plaintiffs pleading if the claim is apparently made in good faith
This is determined at the time of the filing
Subsequent events do not oust jurisdiction

Question 25

What counts toward the amount in controversy?

Answer 25

actual damages, punitive damages, future damages

Question 26

What is not considered in the money damages

Answer 26

costs, attorneys fees, and interests

Question 27

When is the amount controversy determined?

Answer 27

at the filing of the lawsuit

Question 28

How is non-monetary relief governed?

Answer 28

Non-monetary relief is governed by the value of the object tests, sometimes based on the value to the plaintiffs, sometimes to the defendant

Question 29

Pre-judgment

Answer 29

Pre-judgment interest up to the date of the filing, if permitted by law or contract, counts toward the jurisdictional amount in many federal circuit, but has been rejected in some cases
Pre-judgment interest to be incurred after filing and prior to judgment does not count toward the jurisdictional amount since it is not damage suffered as of the date of filing

Question 30

Aggregation of claims to form the amount in controversy: single plaintiff v. single defendant

Answer 30

a single plaintiff may aggregate the damages and other appropriate amounts from all claims, both related and unrelated, against one defendant to form the amount in controversy.

Question 31

Aggregation of claims to form the amount in controversy: multiple plaintiffs v. single defendant

Answer 31

General rule under § 1332: when two or more plaintiffs join in a single lawsuit against a single defendant, they may not aggregate claims, related or unrelated, in order to achieve the $75,000 + jurisdictional amount. This rule has two exceptions
(1) Joint and undivided interest: multiple plaintiffs may aggregate if the claims are based on a common and undivided interest

Question 32

Supplemental jurisdiction exception for the amount in controversy

Answer 32

Supplemental jurisdiction exception: If one plaintiff meets the amount in controversy against the sole defendant, the other plaintiffs’ claims may be joined as supplemental. This does not eliminate the basic requirements for diversity.

Question 33

Aggregation of claims to form the amount in controversy: single plaintiffs v. multiple defendant

Answer 33

the single plaintiff may not aggregate claims against multiple defendants. The test is same as for multiple plaintiffs against a single defendant: no aggregation, whether the claims are related or not.

Question 34

Does class members need an amount in controversy

Answer 34

do not meet the amount in controversy as long as one name class member satisfies §1332

Question 35

Federal Question Jurisdiction statute

Answer 35

Statute 28 U.S.C. § 1331: provides that federal courts have jurisdiction over any civil action arising under the Constitution, laws, or treaties of the United States.

Question 36

Federal law means

Answer 36

federal statutes, federal regulations, executive orders, federal common law, international law, and interstate compacts

Question 37

A supplemental claim…

Answer 37

one lacking its own basis for federal jurisdiction but that is so related to claims in action with such original jurisdiction that it forms a part of the same case or controversy under Article III.

Question 38

Exxon-Mobil created two exceptions

Answer 38

1367(a) and 1367(b)

Question 39

Exxon-Mobil exception 1367(b)

Answer 39

• Preventing plaintiffs from getting around the complete diversity rule
• If anchor claim is based solely on diversity jurisdiction, no supplemental jurisdiction over plaintiff’s claims against (1) stacked parties or (2) third parties
• Allowing plaintiffs to add any related claim for any amount against any diverse party, as long as at least one plaintiff has proper §1332 claim against the defendant.

Question 40

Exxon-Mobile exception 1367(a)

Answer 40

> defendants may use full supplemental jurisdiction under 1367(a)
- Supplemental jurisdiction does not apply to federal cases
- Defendants may file a counter claim against plaintiffs only:
Its compulsory counterclaim under supplemental jurisdiction or the counter claim has an independent basis for federal jurisdiction, such as federal question or diversity

Question 41

Define Removal jurisdiction

Answer 41

Authorizes the transfer of a case from state to federal court

Question 42

Basic requirement for federal jurisdiction

Answer 42

• Must have been capable of original filing in federal court and it must be within the case or controversy boundaries of Article III, Section 2.
• Plaintiffs pleading in the state court must be based on some ground of federal jurisdiction and defendants notice of removal must invoke a jurisdictional statute

Question 43

Procedures applicable to all removed cases

Answer 43

• Must file a notice of removal which includes a copy of all state court pleadings, and must be filed both the state and federal court and served on all parties
• Defendant unanimity: all defendants must join in the removal notice, except for those not served
• Removal is automatic–no need for the state or federal court to approve it

Question 44

Notice of removal has to be filed when

Answer 44

30 days of defendant’s receipt of the initial state court pleading